A

PROJECT REPORT
ON
“EMPLOYEE RETENTION STRATEGIES
AND ITS IMPACT ON EMPLOYEE TURNOVER
IN
HDFC STANDARD LIFE INSURANCE”

Submitted By:
HEENA KUMAR
ENROLLMENT NO.- 0661131708

In partial fulfillment for the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Under the supervision of

Faculty Guide:
Mrs. POOJA GUPTA

BERI INSTITUTE OF
TECHNOLOGY
TRAINING AND
RESEARCH
TIKRI KALAN,
DELHI

(Affiliated to Guru
Gobind Singh Indraprastha University)

PREFACE
The conceptual knowledge acquired by management students is best manifested in the
projects. The present project gave a perfect vent to my understanding of the Human
Resource subject specially the important concept of EMPLOYEE RETENTION
STRATEGIES.

The Project Report entitled “EMPLOYEE RETENTION STRATEGIES AND ITS

IMPACT ON EMPLOYEE TURNOVER IN HDFC STANDARD LIFE
INSURANCE .” is intent to study thoroughly all the strategies that have impact on the
retention and turnover of employees and I would try to find that what makes an employee
retain in an organization.

The objective of my research is to identify the various factors of voluntary leaving of the
employees from the organization. These factors includes job and person mismatch, no
growth opportunities, lack of appreciation, new job offers, lack of trust and support in co-
workers, work/ life imbalance etc. The main objective is to identify the retention
strategies and the strategies for reducing employee turnover and improving retention. It
may include strategies like performance appraisal, career development, training
programs, acknowledgement, recognition, induction programs, motivation, rewards,
promotional opportunities etc.

The efficiency of the organization depends upon the efficiency of its employees. The
efficiency of employees is directly influenced by their own satisfaction. In the present
scenario it is required for each organization to have satisfied employees and to keep
employees satisfied for accomplishing the objectives and for retaining them for long
period. The employee retention is directly linked to employee satisfaction and which in
turn directly linked to the productivity, performance, customer satisfaction of the
organization. The proper recognition, periodical appraisal, motivation to employees,
salary increase etc effects the employee in the positive manner.

ACKNOWLEDGEMENT
This project report is an outcome bearing imprints of many persons who directly and
indirectly encouraged and inspired its completion. I would like to acknowledge their
precious co-operation and express my sincere gratitude to them.

I am indebted to my faculty guide Mrs. Pooja Gupta. She has been a great mentor
throughout the period, constantly encouraging me in refining my work by providing
valuable suggestions and inputs during all stages of the project.

Her steady guidance had been of crucial importance and had helped open many doors to
various issues which at the onset of the project were vague and unclear.

Appreciation also goes to all those employees of HDFC STANDARD LIFE

INSURANCE, who made my study including research work possible and an enjoyable
experience for me. I would like to thank my family, friends and all those who have
always been a constant source of inspiration to me.

TABLE OF CONTENTS
Preface I

Acknowledgement II

CHAPTER 1 INTRODUCTION
1.1 Industry Review
1.2 Company Profile
1.3 SWOT Analysis
1.4 Comparative Analysis

CHAPTER 2 CONCEPTUAL DISCUSSION

CHAPTER 3 RESEARCH METHODOLOGY

3.1 Objectives of the Study
3.2 Significance of the Study
3.3 Sample
3.4 Collection of Data

CHAPTER 4 FINDINGS AND ANALYSIS

CHAPTER 5 CONCLUSIONS AND SUGGESTIONS

Appendix

Bibliography
 CHAPTER 1

INTRODUCTION

INDUSTRY REVIEW
With the largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per
cent annually and presently is of the order of Rs 1560.41 billion (for the financial year
2006 – 2007). Together with banking services, it adds about 7% to the country’s Gross
Domestic Product (GDP). The gross premium collection is nearly 2% of GDP and funds
available with LIC for investments are 8% of the GDP.
Even so nearly 65% of the Indian population is without life insurance cover while health
insurance and non-life insurance continues to be below international standards. A large
part of our population is also subject to weak social security and pension systems with
hardly any old age income security. This in itself is an indicator that growth potential for
the insurance sector in India is immense.
A well-developed and evolved insurance sector is needed for economic development as it
provides long term funds for infrastructure development and strengthens the risk taking
ability of individuals. It is estimated that over the next ten years India would require
investments of the order of one trillion US dollars. The Insurance sector, to some extent,
can enable investments in infrastructure development to sustain the economic growth of
the country.

INDUSTRY REFORMS
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing regulations and registering
the private sector insurance companies. Since being set up as an independent statutory
body the IRDA has put in a framework of globally compatible regulations.
The other decision taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of the
IRDA online service for issue and renewal of licenses to agents. The approval of
institutions for imparting training to agents has also ensured that the insurance companies
would have a trained workforce of insurance agents in place to sell their products.

PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA

The life insurance industry in India grew by an impressive 47.38%, with premium
income at Rs. 1560.41 billion during the fiscal year 2006-2007. Though the total volume
of LIC's business increased in the last fiscal year (2006-2007) compared to the previous
one, its market share came down from 85.75% to 81.91%.
The 17 private insurers increased their market share from about 15% to about 19% in a
year's time. The figures for the first two months of the fiscal year 2007-08 also speak of
the growing share of the private insurers. The share of LIC for this period has further
come down to 75 percent, while the private players have grabbed over 24 percent.
With the opening up of the insurance industry in India many foreign players have entered
the market. The restriction on these companies is that they are not allowed to have more
than a 26% stake in a company’s ownership.
Since the opening up of the insurance sector in 1999, foreign investments of Rs. 8.7
billion have poured into the Indian market and 19 private life insurance companies have
been granted licenses.

Innovative products, smart marketing, and aggressive distribution have enabled fledgling
private insurance companies to sign up Indian customers faster than anyone expected.
Indians, who had always seen life insurance as a tax saving device, are now suddenly
turning to the private sector and snapping up the new innovative products on offer. Some
of these products include investment plans with insurance and good returns (unit linked
plans), multi – purpose insurance plans, pension plans, child plans and money back plans.

COMPANY PROFILE
 HDFC STANDARD LIFE INSURANCE COMPANY
LIMITED

HDFC Standard Life insurance is the oldest life insurance company in the world. It is the
largest insurer in the UK and is the 28th largest company in the world. In India, the
company is marketing life insurance products and unit linked investment plans.
HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since
emerged as the largest residential mortgage finance institution in the country. The
corporation has had a series of share issues raising its capital to Rs. 119 Crores. The gross
premium income for the year ending March 31, 2007 stood at Rs. 2,856 Crores and new
business premium income at Rs. 1,624 Crores. The company has covered over 8,77,000
lives year ending March 31, 2007.
HDFC operates through almost 450 locations throughout the country with its corporate
head quarters in Mumbai, India. HDFC also has an International Office in Dubai, UAE
with service associates in Kuwait, Oman and Qatar. HDFC is the largest housing
company in India for the last 27 years.
Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive
Chairman of Housing Development Finance Corporation Limited (HDFC Limited).

HDFC Standard Life Insurance Company Ltd. is one of India’s leading Private Life
Insurance Companies, which offers a range of individual and group insurance solutions.
It is a joint venture between Housing Development Finance Corporation Limited (HDFC
Ltd.) India’s leading housing finance institution and the Standard Life Assurance
Company, a leading provider of financial services from the United Kingdom. Both the
promoters are will known for their ethical dealings and financial strength and are thus
committed to being a long-term player in the life insurance industry- all important factors
to consider when choosing your insurer.

HDFC Standard Life's wide and diversified product portfolio help individuals meet their
various needs, be it:
 • Protection: Need for a sound income protection in case of your unfortunate
demise
• Investment: Need to ensure long-term real growth of your money
• Savings: Save for the milestones and protect your savings too
• Pension: Need to save for a comfortable life post retirement
• Health: Cover for health related exigencies

PRODUCTS & SERVICES

The right investment strategies won’t just help plan for a more comfortable tomorrow –
they will help you get “Sar Utha Ke Jiyo”. At HDFC SLIC, life insurance plans are
created keeping in mind the changing needs of family. Its life insurance plans are
designed to provide customers with flexible options that meet both protection and savings
needs. It offers a full range of transparent, flexible and value for money products.

PLANS THAT ARE OFFERED BY HDFC STANDARDS LIFE

INSURANCE

Protection Plans
A person can protect his family against the loss of his income or the burden of a loan in
the event of his unfortunate demise, disability or sickness. These plans offer valuable
peace of mind at a small price. Protection range includes our Term Assurance Plan &
Loan Cover Term Assurance Plan.

Investment Plans
HDFC SLIC’s Single Premium Whole of Life plan is well suited to meet long term
investment needs. This provides attractive long term returns through regular bonuses.

Pension Plans
Pension Plans help to secure financial independence even after retirement. Pension range
includes Personal Pension Plan, Unit Linked Pension.

SWOT ANALYSIS
STRENGTHS

• Domestic image of HDFC supported by Standard Life’s international image is

strength of the company .
• Strong and well spread network of qualified intermediaries and sales person.
• Strong capital and reserve base.
• The company provides customer service of the highest order.
• Huge basket of product range which are suitable to all age and income groups.
• Large pool of technically skilled manpower with in depth knowledge and
understanding of the market.
• The company also provides innovative products to cater to different needs of
different customers.

WEAKNESSES

• Heavy management expenses and administrative costs.

• Low customer confidence on the private players.
• Vertical hierarchical reporting structure with many designations and cadres
leading to power politics at all levels without any exception.
• Poor retention percentage of tied up agents.

OPPORTUNITIES
 • Only 25% of insurable people have any insurance.
• Can introduce innovative products offering a right mix of flexibility/ risk/ return.
• International companies will help in building world class expertise in local market
by introducing the best global practices.
• Insurance liberalization in India is expected to result in a wider choice of major
commercial insurance covers, such as fire, export credit,...

THREATS

• LIC’s brand name

• People prefer short investment rather in insurance.
• Other private insurance companies.

COMPETITOR ANALYSIS
HDFC – Standard :-
HDFC Standard is a 74:26 joint venture between HDFC and Standard Life. It is a private
sector company. The market share for FY 2005 – 06 was 2.87%.

Life Insurance Corporation of India (LIC) :-

Life Insurance Corporation of India is a 100% government held Public Sector Company.
Being the first to be established LIC is the forerunner in the Life Insurance sector. The
market share for FY 2005-06 was 71.44%.

Kotak Mahindra OLD Mutual :-

Kotak Mahindra OLD Mutual is a 74:26 joint venture between Kotak Mahindra Bank and
Old Mutual. It is a private sector company. The market share for FY 2005 – 06 was
1.11%.

Bajaj Allianz Life Insurance Company :-

Bajaj Allianz Life Insurance Company is a 74:26 joint venture between Bajaj Auto
limited and Allianz AIG. The market share for FY 2005- 06 was 7.56%.
 CHAPTER 2

CONCEPTUAL DISCUSSION

In these changing times both the employee & employer are under tremendous pressure to
perform. There is fierce competition not only in the industry but also across categories.
This new liberalized cutting edge technology driven environment has made employee
retention mind-boggling. The fast pacing change across the globe has made the new
employee & employer relationship irreversible.

RETENTION

“High performers are like frogs in a wheelbarrow-

They can jump out at
any time”
-Mc Kinsey &
Company Study.

“Genius begins and labor finishes” is an old saying that would be profoundly significant
if interpreted in the context of corporate and large employers. Concepts, visions and
decisions do take shape within the four walls of corporate boardrooms. However, it is
only the employees that implement and give tangibility to the corporate’s mission. In
other words if it is the highest rung in the corporate hierarchy that has ideas, it is the
employees’ rung that has the chisel to bring the vision to life.

In the best of worlds, employees would love their jobs. Like their co-workers, work hard
for their employers; get paid well for their work, ample chances of advancement and
flexible schedules so they could attend to personal or family needs when necessary. And
never leave.
But then there’s the real world. And in the real world, employees, do, leave, either
because they want more money, hate the working conditions, hate their co-workers, want
a change, or because their spouse gets a dream job in another state. Unlike inanimate
products and systems that subject themselves to fine tuning without any reaction,
employees would not subject themselves to any measure taken without reaction and
analysis. Hence managing human resources, particularly retaining them, is an art that
calls for special skills and strategies.

EMPLOYEE RETENTION

Employee Retention involves taking measures to encourage employees to remain in the

organization for the maximum period of time. Corporate is facing a lot of problems in
employee retention these days. Hiring knowledgeable people for the job is essential for
an employer. But retention is even more important than hiring. There is no dearth of
opportunities for a talented person. There are many organizations which are looking for
such employees. If a person is not satisfied by the job he’s doing, he may switch over to
some other more suitable job. In today’s environment it becomes very important for
organizations to retain their employees.

The top organizations are on the top because they value their employees and they know
how to keep them glued to the organization. Employees stay and leave organizations for
some reasons.

Employee retention is a process in which the employees are encouraged to remain with
the organization for the maximum period of time or until the completion of the
project. Employee retention is beneficial for the organization as well as the employee.
The picture states the latest statement that corporate believes in “Love them or lose them”

The reason may be personal or professional. These reasons should be understood by the
employer and should be taken care of. The organizations are becoming aware of these
reasons and adopting many strategies for employee retention.
Employees today are different. They are not the ones who don’t have good opportunities
in hand. As soon as they feel dissatisfied with the current employer or the job, they
switch over to the next job. It is the responsibility of the employer to retain their best
employees. If they don’t, they would be left with no good employees. A good employer
should know how to attract and retain its employees.

Retention involvesfive major things:

 1. Compensation 2. Environment

3. Growth 4. Relationship

5. Support

Employee retention would require a lot of efforts, energy, and resources but the results
are worth it.
 IMPORTANCE OF EMPLOYEE RETENTION

Now that so much is being done by organizations to retain its employees, why is retention
so important? Is it just to reduce the turnover costs? Well, the answer is a definite no. It’s
not only the cost incurred by a company that emphasizes the need of retaining employees
but also the need to retain talented employees from getting poached.

The process of employee retention will benefit an organization in the following ways:

1.The Cost of Turnover: The cost of employee turnover adds hundreds of thousands
of money to a company's expenses. While it is difficult to fully calculate the cost of
turnover (including hiring costs, training costs and productivity loss), industry
experts often quote 25% of the average employee salary as a conservative estimate.

2.Loss of Company Knowledge: When an employee leaves, he takes with him

valuable knowledge about the company, customers, current projects and past history
(sometimes to competitors). Often much time and money has been spent on the
employee in expectation of a future return. When the employee leaves, the
investment is not realized.

3.Interruption of Customer Service: Customers and clients do business with a

company in part because of the people. Relationships are developed that encourage
continued sponsorship of the business. When an employee leaves, the relationships
that employee built for the company are severed, which could lead to potential
customer loss.

4.Turnover leads to more turnovers: When an employee terminates, the effect is felt
throughout the organization. Co-workers are often required to pick up the slack. The
unspoken negativity often intensifies for the remaining staff.
5.Goodwill of the company: The goodwill of a company is maintained when the
attrition rates are low. Higher retention rates motivate potential employees to join the
organization.

6.Regaining efficiency: If an employee resigns, then good amount of time is lost in

hiring a new employee and then training him/her and this goes to the loss of the
company directly which many a times goes unnoticed. And even after this you
cannot assure us of the same efficiency from the new employee.

WHAT MAKES EMPLOYEE LEAVES?

Employees do not leave an organization without any significant reason. There are certain
circumstances that lead to their leaving the organization. The most common reasons can
be:
Job is not what the employee expected to be: Sometimes the job responsibilities don’t
come out to be same as expected by the candidates. Unexpected job responsibilities lead
to job dissatisfaction.

1.Job and person mismatch: A candidate may be fit to do a certain type of job which
matches his personality. If he is given a job which mismatches his personality, then he
won’t be able to perform it well and will try to find out reasons to leave the job.

2.No growth opportunities: No or less learning and growth opportunities in the

current job will make candidate’s job and career stagnant.

3.Lack of appreciation: If the work is not appreciated by the supervisor, the

employee feels de-motivated and loses interest in job.
4.Lack of trust and support in co-workers, seniors and management: Trust is the
most important factor that is required for an individual to stay in the job. Non-
supportive co-workers, seniors and management can make office environment
unfriendly and difficult to work in.

5.Stress from overwork and work life imbalance: Job stress can lead to work life
imbalance which ultimately many times lead to employee leaving the organization.

6.Compensation: Better compensation packages being offered by other companies

may attract employees towards themselves.

7.New job offer: An attractive job offer which an employee thinks is good for him with
respect to job responsibility, compensation, growth and learning etc. can lead an
employee to leave the organization.

EMPLOYEE RETENTION STRATEGIES

The basic practices which should be kept in mind in the employee retention strategies are:

1. Hire the right people in the first place.

2. Empower the employees: Give the employees the authority to get things done.
3. Make employees realize that they are the most valuable asset of the organization.
4. Have faith in them, trust them and respect them.
5. Provide them information and knowledge.
6. Keep providing them feedback on their performance.
7. Recognize and appreciate their achievements.
8. Keep their morale high.
9. Create an environment where the employees want to work and have fun.
These practices of retention can be categorized in 3 levels:

low medium high

3 levels

Low Level

Appreciating and Medium Level

recognizing a well done High Level
job Benefit program for
family support Providing work / life
Recognizing
effectiveness
professional as well as Providing training and
personal significant development and Understand employee
events personal growth needs
opportunities
Employee support in
Hire the right people
tough time Providing convenience from the beginning
at work place
 MANAGER’S ROLE IN RETENTION

It is seen that managers who respect and value employees’ competency, pay attention to
their aspirations, assure challenging work, value the quality of work life and provided
chances for learning have loyal and engaged employees. Therefore, managers and team
leaders play an active and vital role in employee retention by creating a motivating team
culture and improving the relationships with team members. This can be done in a
following way:
1.Creating a Motivating Environment: Team leaders who create motivating environments
are likely to keep their team members together for a longer period of time. Motivation
does not necessarily have to come through fun events such as parties, celebrations, team
outings etc. They can also come through serious events e.g. arranging a talk by the VP of
Quality on career opportunities in the field of quality. Employees who look forward to
these events and are likely to remain more engaged.
2.Standing up for the Team: Team leaders are closest to their team members. While they
need to ensure smooth functioning of their teams by implementing management
decisions, they also need to educate their managers about the realities on the ground.
When agents see the team leader standing up for them, they will have one more reason to
stay in the team.
3.Providing coaching: Everyone wants to be successful in his or her current job.
However, not everyone knows how. Therefore, one of the key responsibilities will
be providing coaching that is intended to improve the performance of employees.
Managers often tend to escape this role by just coaching their employees. However,
coaching is followed by monitoring performance and providing feedback on the same.
4.Delegation: Many team leaders and managers feel that they are the only people who can do
a particular task or job. Therefore, they do not delegate their jobs as much as they should.
Delegation is a great way to develop competencies.
5.Extra Responsibility: Giving extra responsibility to employees is another way to get them
engaged with the company. However, just giving the extra responsibility does not help.
The manager must spend good time teaching the employees of how to manage
responsibilities given to them so that they don’t feel over burdened.
6.Focus on future career: Employees are always concerned about their future career. A
manager should focus on showing employees his career ladder. If an employee sees that
his current job offers a path towards their future career aspirations, then they are likely to
stay longer in the company. Therefore, managers should play the role of career
counselors as well.

BENEFITS OF ATTRITION

Attrition is not bad always if it happens in a controlled manner. Some attrition is always
desirable and necessary for organizational growth and development. The only concern is
how organizations differentiate “good attrition” from “bad attrition”. The term “healthy
attrition” or “good attrition” signifies the importance of less productive employees
voluntarily leaving the organization. This means if the ones who have left fall in the
category of low performers, the attrition in considered being healthy.
Attrition rates are considered to be beneficial in some ways:
1. If all employees stay in the same organization for a very long time, most of them
will be at the top of their pay scale which will result in excessive manpower costs.
2. When certain employees leave, whose continuation of service would have negatively
impacted productivity and profitability of the company, the company is benefited.
3. New employees bring new ideas, approaches, abilities & attitudes which can keep
the organization from becoming stagnant.
4. There are also some people in the organization who have a negative and demoralizing
influence on the work culture and team spirit. This, in the long-term, is detrimental to
organizational health.
5. Desirable attrition also includes termination of employees with whom the organization
does not want to continue a relationship. It benefits the organization in the following
ways:
• It removes bottleneck in the progress of the company.
• It creates space for the entry of new talents.
• It assists in evolving high performance teams
6. There are people who are not able to balance their performance as per expectations, lack
potential for future or need disciplinary action. Furthermore, as the rewards are limited,
business pressures do not allow the management to over-reward the performers, but when
undesirable employees leave the company, the good employees can be given the share
that they deserve.
Some companies believe attrition in any form is bad for an organization for it means that a
wrong choice was made at the beginning while recruiting. Even good attrition indicates
loss as recruitment is a time consuming and costly affair. The only positive point is that
the realization has initiated action that will lead to cutting loss.

WAYS TO REDUCE EMPLOYEE TURNOVER

Following are some of the ideas to reduce employee turnover:

1. Hire the best candidate.

2. Welcome new employees. Customize your induction program for new employees
according to the requirements. Same induction program can not be applied to all the
candidates. Make them feel welcomed.

3. Produce quality managers who can really manage employees well.

4. Provide employees with work schedules that are flexible enough to suit their needs.

5. Don’t be too demanding. You re hiring human beings who have their own life and
family commitments. Respect them.

6. Provide career counseling and development.

7. Discuss your future plans regarding the candidate with the candidate. Let them know
that the management is interested in retaining them and cares for them.

8. Take proper feedback from employees regarding their grievances.

9. Remember your former employees. They can be helpful to you in future. It is also a
part of employee retention.

RETENTION SUCCESS MANTRAS

1) Transparent Work Culture

In today’s fast paced business environments where employees are constantly striving to
achieve business goals under time restrictions; open minded and transparent work culture
plays a vital role in employee retention.
Companies invest very many hours and monies in training and educating employees.
These companies are severely affected when employees check out, especially in the
middle of some big company project or venture. Although employees most often prefer to
stay with the same company and use their time and experience for personal growth and
development, they leave mainly because of work related stress and dissatisfactions.
More and more companies have now realized the importance of a healthy work culture
and have a gamut of people management good practices for employees to have that ideal
fresh work-life. Closed doors work culture can serve as a deterrent to communication and
trust within employees which are potential causes for work-related apathy and frenzy.
A transparent work environment can serve as one of the primary triggers to facilitate
accountability, trust, communication, responsibility, pride and so on. It is believed that in
a transparent work culture employees rigorously communicate with their peers and
exchange ideas and thoughts before they are finally matured in to full-blown concepts.
It induces responsibility among employees and accountability towards other peers, which
gradually builds up trust and pride. More importantly, transparency in work environment
discourages work-politics which often hinders company goals as employees start to
advance their personal objectives at the expense of development of the company as a
single entity.
Employees comprise the most vital assets of the company. In a work place where
employees are not able to use their full potential and not heard and valued, they are likely
to leave because of stress and frustration. In a transparent environment while employees
get a sense of achievement and belongingness from a healthy work environment, the
company is benefited with a stronger, reliable work-force harboring bright new ideas for
its growth.

2) Quality of Work

The success of any organization depends on how it attracts recruits, motivates, and
retains its workforce. Organizations need to be more flexible so that they develop their
talented workforce and gain their commitment. Thus, organizations are required to retain
employees by addressing their work life issues.
The elements that are relevant to an individual’s quality of work life include the task, the
physical work environment, social environment within the organization, administrative
system and relationship between life on and off the job.
The basic objectives of a QWL program are improved working conditions for the
employee and increase organizational effectiveness.

Providing quality work life involves taking care of the following aspects:
1.Occupational health care: The safe work environment provides the basis for the
person to enjoy working. The work should not pose a health hazard for the person. The
employer and employee, aware of their risks and rights, could achieve a lot in their
mutually beneficial dialogue.
2.Suitable working time: Organizations are offering flexible work options to their
employees wherein employees enjoy flexi-timings for dedicating their efforts at work.
3.Appropriate salary: The appropriate as well as attractive salary has always been an
important factor in retaining employees. Providing employees salary at par with the other
counterparts of above that what competitors are paying motivates them to stick with the
company for long.
QWL consists of opportunities for active involvement in group working arrangements or
problem solving that are of mutual benefit to employees or employers, based on labor
management cooperation. People also conceive of QWL as a set of methods, such as
autonomous work groups, job enrichment, and high-involvement aimed at boosting the
satisfaction and productivity of workers. It requires employee commitment to the
organization and an environment in which this commitment can flourish.
Providing quality at work not only reduces attrition but also helps in reduced absenteeism
and improved job satisfaction. Not only does QWL contribute to a company's ability to
recruit quality people, but also it enhances a company's competitiveness. Common beliefs
support the contention that QWL will positively nurture amore flexible, loyal, and
motivated workforce, which are essential in determining the company's competitiveness.
3) Supporting Employees
Organizations these days want to protect their biggest and most valuable asset and they
want to do this in a way that best suits their organizational culture. Retaining employees
is a difficult task. Providing support to the employees acts as a mantra for retraining
them. Employers can also support their employees by creating an environment of trust
and inculcating the organizational values into employees.
The management can support employees directly or indirectly. Directly, they provide
support in terms of personal crises, managing stress and personal development.
Management can support employees, indirectly, in a number of ways as follows:
1.Manage employee turnover: Employee turnover affects the whole organization in
terms of productivity. Managing the turnover, hence, becomes an important task. A
proactive approach can be adopted to reduce attrition. Strategies should be framed in
advance and implemented when the times arrives. Turnover costs should also be taken
into consideration while framing these strategies.
2.Become employer of choice: What makes a company an employer of choice? Is the
benefit it offers or the compensation packages it gives away to its employees? Or is it
measured in terms of how they value their employees or in terms of customer
satisfaction? Becoming an employer of choice involves following a road map which tells
where to go as a brand.
3.Engage the new recruits: The newly hired employees are said to be least engaged in
the organization. Keeping them engaged is an important task. The fresh talent should be
utilized to maximum before they start feeling bored in the organization.
4.Optimize employee engagement: An organization’s productivity is measured not in
terms of employee satisfaction but by employee engagement. Employees are said to be
engaged when they show a positive attitude toward the organization and express a
commitment to remain with the organization. Employee satisfaction also comes with high
engagement levels. So, organizations should aim to maximize the engagement among
employees.
5.Coaching and mentoring: Employees whose work performance suffers due to poor
interpersonal relationships or because of lack of interpersonal skills should be provided
proper coaching by their superiors. Planed coaching sessions help an individual to work
through issues, maximize his potential and return to peak performance.
4) Feedback
Feedback acts as a channel of communication between the employee and his manager.
The amount of information employees receive about how well or how poorly they have
performed is what we call feedback. It is a dialog between a manager and an employee
which acts as a way of sharing information about the performance. It suggests where the
employee performance is effective and where performance has to improve.
Managers can provide either positive feedback or negative feedback to employees. This
feedback helps the employee assess his performance and identify the improvement
areas.Positive feedback communicates managerial satisfaction. Positive recognition for
good
performance boosts up morale of employees and results in performance improvement to a
higher productivity level. It is believed that positive feedback is the only type of feedback
that generates performance above the minimum acceptable level.
Negative feedback obviously communicates manager’s dissatisfaction. However,
negative feedback sometimes make employee to put more efforts to improve his
performance. But such times are very rare. Moreover this improvement is short term.
Some managers do not provide any kind of feedback to their employees. Due to no
feedback, employees may assume that they are performing productively or they may feel
that the manager is satisfied with their performance. Studies reveal the performance tends
be same or even decreases if no feedback is provided.
Thus, feedback is necessary because:
1. It builds trust and enhances communication between manager and employee.
2. It gives managers and employees a way to identify and discuss skills and strengths.
3. Positive feedback leads to employee retention and motivation.
4. It helps in identifying performance areas that need improvement and specific ways to
improve them.
5. It acts as an opportunity to enhance performance by identifying resources for skill
development.
6. It is an opportunity for managers and employees to assess and identify career and
advancement opportunities.
7. It helps employees to understand the effectiveness of their performance and
contributes to their overall knowledge about the work
Managers have tendency to ignore good performances of their employees. Providing no
feedback may de-motivate employees and may lead to employee absenteeism. Input from
manager’s side is necessary as it help employees to improve their performance and
increase productivity.
5) Communication between Employee and Employer
Communication is the solution to almost everything in this world. Same applies to
employee retention also. Straight-from-the-shoulder communication is what the
employees need from their employers. Employees look for organizations where
communication and process are transparent. Nothing is hidden and shared with the
employees. Communication is also the way to win the employees trust in the
organization. Employees trust the employers who are friendly and open to them. This
trust leads to employee loyalty and finally retention.
Employers also feel that the immediate supervisors are the most authenticated and trusted
source of information for them. So the organizations should hire managers who are active
communicators.
Communication mediums
1. Open door policy: Organizations should support open door policies so that the
employees feel comfortable and are able to express their doubts and feeling to their
employers.
2. Frequent meetings and Social gatherings
3. Emails, Newsletters, Intranet and many more
 CHAPTER 3

RESEARCH METHODOLOGY
 OBJECTIVES OF THE STUDY

1. To study the common reasons of employee voluntarily leaving from the

organization.

2. To study efforts made by managers to retain employee.

3. To understand the retention level of employee towards the organization.

4. To study the impact of induction & training programs on retention of employees.

5. To determine the organizational climate.

 SIGNIFICANCE OF THE STUDY

The study intends to see the satisfaction level of the employees on the facilities provided
by the company and to measure their employee retention and how these welfare measures
boost the employee morale.

An industrial organization is substantially benefited, if it cares to develop general

individual attitudes in its personnel programmed that can effectively contribute to the
satisfactory level of the employees. If an organization appropriately discovers attitudes
and factors related to the job, it can take necessary steps to prevent bad situations and
thereby improve the retention level of the employees.

The result supports the fundamental effect, that retention level of the employees reflects
the welfare schemes and benefits offered which drive towards motivation of the
employees and retaining them in the organization.
 SAMPLE

Sample Design

A sample design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure the researcher would adopt in selecting item for
the sample.

Size of Sample

This refers to the number of respondents to be selected from the universe to

constitute a sample.

In my research sample size is 50 respondents.

COLLECTION OF DATA

The researcher can gather primary data, secondary data or both. Secondary data are data
that were collected for another purpose and already exist somewhere. Primary data are
data specially gathered for a specific purpose or a specific research project. When the
needed data do not exist or are outdated, inaccurate, or unreliable, the researcher will
have to collect primary data.

PRIMARY DATA:
Primary data is collected through employees of the company.

SECONDARY DATA:
The main source of information for the project was:
 • Internet

TECHNIQUES OF DATA ANALYSIS

The statistical tools used for analyzing the data collected are percentage method, bar
diagrams and pie diagrams.
 CHAPTER 4

FINDINGS AND ANALYSIS

 FINDINGS

1. According to analysis the main reasons for voluntarily leaving the job are:
• Lucrative opportunities from other companies
• Bad employment practices
• Lack of social life

2. The main cause for reduction in number of employees is not providing healthy
environment, delegation, not providing incentives, job and person mismatch, lack of
appreciation, stress from overwork etc.

3. Efforts made by organization to retain its employees are:

• Offer salary hike.
• Offer training &development programs to employees.

4. Provides career development programs to retain as well as to motivate employees to

work efficiently in the organization.

5. Make employee realize that they are the most valuable assets of the organization.

6. Maximum no. of workers are satisfied from the culture of the organization.

7. The main factors of organization’s climate are proactive, openness and

experimentation.
1) Are you satisfied with your current job ?

a) Highly satisfied b) Satisfied c) Neutral

d) Dissatisfied e) Highly dissatisfied

S.NO PARTICULARS NUMBER OF PERCENTAGE

RESPONDENTS
1 Highly satisfied 17 34
2 Satisfied 28 56
3 Neutral 3 6
4 Dissatisfied 1 2
5 Highly dissatisfied 1 2
TOTAL 50 100

60% 56%

50%

40%
34%
30%

20%

10% 6%
2% 2%
0%
Highly Satisfied Satisfied Neutral Dissatisfied Highly
Dissatisfied

Comment - The table shows that 34% of the respondents are highly satisfied with their
present job.
56% are satisfied with the job and 2% are highly dissatisfied with the
 present job.

2) According to you what are the major reasons for voluntary leaving of the employees

From the organization ?

a) Job and person mismatch b) No growth opportunities

c) Lack of appreciation d) New job offers

e) Lack of trust and support in co-workers, seniors f) Work/life imbalance

and management

S.NO PARTICULARS NUMBER OF PERCENTAGE

RESPONDENTS
1 Job and person 4 8
mismatch
2 No growth 13 26
opportunities
3 Lack of appreciation 6 12
4 New job offers 14 28
5 Lack of trust and 11 22
support in co-
workers, seniors and
management
6 Work / life imbalance 2 4
TOTAL 50 100

Comment – The table shows that common reasons for voluntary leaving of an employee
are new job offers (28%), no growth opportunities (26%), lack of trust and support
(22%).
 Job and pers on
m ism atch

4% 8% No grow th opportunities
22%
26%
Lack of appreciation

New job offers

28% 12%

Lack of trust and

support in co-w orkers,
seniors and
m anagem ent

Work / life im balance

Comment – The table shows that common reasons for voluntary leaving of an employee
are new job offers (28%), no growth opportunities (26%), lack of trust and support
(22%).
CHAPTER 5
 CONCLUSIONS
AND
SUGGESTIONS

CONCLUSION

As employees are the bases for company so retention of employees is a major focus for
HR department. The management should identify the important factors that affect
retention and should take necessary measures to improve these. Also, the management
should take appropriate measure to identify the reasons of employee voluntarily leave.
It is only the employees that implement and give tangibility to the corporate’s mission. In
other words if it is the highest rung in the corporate hierarchy that has ideas, it is the
employees’ rung that has the chisel to bring the vision to life. In the best of worlds,
employees would love their jobs. Like their co-workers, work hard for their employers,
get paid well for their work, have ample chances of advancement and flexible schedules
so they could attend to personal or family needs when necessary. And never leave.
But then there’s the real world. And in the real world, employees, do, leave, either
because they want more money, hate the working conditions, hate their co-workers, want
a change, or because their spouse gets a dream job in another state. Unlike inanimate
products and systems that subject themselves to fine tuning without any reaction,
employees would not subject themselves to any measure taken without reaction and
analysis. Hence managing human resources, particularly retaining them, is an art that
calls for special skills and strategies.

Employee survey and exit interviews can be used for assessing the reasons of employee
voluntarily leave. HR interventions such as improving selection process, effective
orientation and training, better employee relation, better career development programs
and planning etc should be used to improve employee retention.

SUGGESTIONS

• Most of the employees agree that the performance appraisal activities are helpful to
retain employees, so the company should try to improve performance appraisal
system, so that they can retain employees and improve their performance.

• The trust and support is lacking in the co-workers so the organization should try to
 focus on it.

• In the organization climate collaboration is lacking so the organization has to make

efforts in this direction so that employees can work collaboratively.

• Organization can reduce employee turnover by providing flexible work schedules.

• The organization must consider about providing more growth opportunities for
employees.

BIBLIOGRAPHY

• Gupta Shashi K. & Joshi Rosy, Human Resource Management, Tata

McGraw Hill, Fourth Revised & Enlarged Edition, 2009.

• www.google.com
 • www.yahoo.com

• www.hdfc.com

ANNEXURE

QUESTIONNAIRE

1) Are you satisfied with your current job ?

a) Highly satisfied b) Satisfied c) Neutral

d) Dissatisfied e) Highly dissatisfied

2) According to you what are the major reasons for voluntary leaving of the employees
from the organization?
a) Job and person mismatch b) No growth opportunities
c) Lack of appreciation d) New job offers

e) Lack of trust and support in co-workers, f) Work/life imbalance

seniors and management

3) Do you agree that organization takes initiative in retaining employees?

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly disagree

4) What efforts organization make for retaining employees?

a) Offer salary hike b) Offer training and development programs.

c) Offer a promotion d) Provides flexible work hours

e) Provides assistance for personal problems f) Proper feedback

g) Recognition and appreciation h) Empowerment

5) Do you agree that motivation is important for retaining employees?

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly disagree

6) Do you agree that recognizing and acknowledging the employees work’s work is
helpful in retaining employees or improving retention?
a) Strongly agree b) Agree c) Neutral
d) Disagree e) Strongly disagree

7) Do you think there is effective performance appraisal system for providing feedback?

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly disagree

8) How frequently you are been rewarded by your boss?

a) Once in a month b) Once in 2-3 months

c) More than 3 months d) Never/Rare

e) On achieving the targets

9) Is job security exist in the company?

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly disagree

10) Do you have good relation with the co-workers?

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly disagree